As digitisation has become a prime focus in the ecosystem, entrepreneurs around the world are making use of this opportunity and foraying in the digital sphere. Recently, Tata Sons, a holding firm of Tata Group, has initiated an enterprise in the digital sector, called Tata Digital.
Tata Sons has commissioned Pratik Pal as Chief Executive of the digital firm, Tata Digital. Pal has earlier worked with the software company, TCS, according to the daily news, Mint.
“The new entity is ‘formed to incubate new digital businesses’,” an official statement from Tata Sons said.
The company has not disclosed any investment amount or any other details in its statement.
In an interview with the daily news, Group Chairman of Tata Sons, N. Chandrasekaran told that Tata Sons would invest INR 1,000 crore in the new business.
"The company will create many digital platforms. We have already identified the platforms we want to create. The first platform is already being built and the next two to three platforms are in the process of being developed," Chandrasekaran said.
Pratik Pal Will Helm Tata Digital
Before joining Tata Digital, Pratik Pal has worked at TCS as the Global Head of travel, transportation, hospitality, and various other segments.
“Pal was responsible for the growth of TCS' second-largest industry segment as the global head of retail, travel, transportation, hospitality, and consumer packaged goods industry unit,” the company statement said.
"Pratik brings strong domain knowledge of consumer-centric businesses to this role combined with a deep understanding of how new digital technologies are disrupting these industries. As the CEO of Tata Digital, Pratik will play a key role in building new platforms of growth," Chairman at Tata Sons, N Chandrasekaran told the daily news.
“His experience and commitment will be very valuable in shaping and developing new opportunities for Tata Group in the digital economy,” Chandrasekaran added.
Tata Group Consolidating Its Foothold
The e-commerce industry in India is getting competitive as two key players, Amazon and Walmart-backed Flipkart are enticing consumers with massive promotions and retailing strategies. To compete with these two e-tailers, Tata CLiQ, which is an e-commerce venture of Tata Group, has received an investment of INR 292 crore from the group company in April 2019, according to the company’s regulatory filings.
The current year’s investment was 30 per cent higher than the financial year 2018, where INR 224 crore investment was done, according to the filings to RoC (Registrar of Companies).
Similar to this investment, Tata Group has enhanced its other business by getting into collaboration. Earlier in June, Tata Sky, a joint venture of Tata Sky and 21st Century Fox, has collaborated with Amazon to render users access to several video streaming applications through a one-time subscription fee of INR 249.
So, by adopting new techniques and trends, the conglomerate firm is trying to fortify its foothold in the growing Indian market.